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Hey six at fifty five camera see the talk station. It is that time of the week, Every Tuesday, it's the inside Scoop with bright Bart News. I always start out with a segment saying, book market br E I t BA RT dot com. You'd be glad you did great stuff there, most utly by the economics editor and co author of the bright Bart Business Digest, The Return of John Carney. Welcome back, John. It's always a pleasure to have you on the morning show.
Yes, thanks for having me.
Now, we've been hearing about a market correction for months and months, if not a couple of years. Market's overvalued. There's going to be a correction. And lo and behold. Now that the market is down and there has been what is characterized as a correction with the S and P five hundred ten percent, it's Trump's fault with the tariffs. Now, I don't know if you can draw a straight line
between tariffs and the market. I know the market reacted to tariffs and a lot of economists don't like them because they say, it's an additional tax on the American people. And I'm kind of sitting on the fence one way or another about whether they're a good thing or not. But you can't compete with a country like China. I mean, they have slave labor, they don't have OSHA, they don't have unions, they don't have regulations. I mean it's just,
you know, we don't have an equal playing field. And so tariff seemed to be sort of an honest way of dealing with goods flowing in from China. What's your take?
That's right. Look, it even goes further beyond that. China's predatory practices actually have really depressed investment in US innovation because let's say you want to build a rare earth mining facility in the US. So you spend a couple hilarious yeah dollars to build this facility. China will subsidize its rare earth mining so that the price drops the low the cost of production until the US facility goes
out of business. This has actually happened a few times, not just in rare earths, but in many different fields. And so what we see is a lack of investment because you know, if you put in place that investment, China will come in to wipe you out with their state backed companies. So what does that mean. It means that we have to do something about it if we want to be innovative, if we want to be able to do these kind of industries in the US, and
so Trump is doing that. I also have to say I don't buy the tariffs caused the selloff argument at all. Trump got elected back in November. Everybody knew tariffs were coming. The market did very well in November, December, and January, sold off in February and the beginning of March. That timing doesn't make a lot of sense unless you have the theory that somehow people thought Trump was joking about tariffs. I mean, he was already president. We know he wasn't joking.
This was real, it was coming. I don't buy the narrative that tariffs caused the sell off.
Yeah, and I recognize that completely. So I'm willing to give that a nod, and again a correction was long overdue. But the other component of it is, of course, when you point out China, can you know, build something subsidize it to to undermine any efforts here to compete on any playing field. They also don't have to fight environmental lawsuits and challenges that seem to come out of the four corners of the globe.
Right, they don't have judges that will enjoin every single thing that the that their government attempts to do to encourage innovation. Right. If Donald Trump says, you.
Know what, I legally, under the law, I have the authority to suspend this regulation, to change this regulation, because that's been a power given by Congress to the executive branch to set the regulations, a federal judge will.
Say, Nope, I'm not going to let you do that. China doesn't have the problem a little of an activist judiciary getting in the way of pro industrial reform.
If they did, they would be, in modern parlance, disappeared. If you know what I mean, well, exactly right. And the Trump's efforts, of course, are to return business to the United States. You know, if it's more expensive to do business elsewhere, then someone might likely relocate to the United States where they're going to enjoy the tax advantages of being here. And that's already borne fruit to some degree.
Got Ge Aerospace a Sahi JSW Steel Honda, Hyundai, LG, Samsung, and stilanis promising to invest billions of dollars here in the United States. And this is an effort that's going to take time, but it also responds to a challenge of something we all painfully learned from COVID is that we woke up to the reality that China was making literally everything that we needed by way of healthcare products, including all of our medicines. That is scary that component itself.
Pharmaceuticals manufactured based on Chinese components or fully manufactured in China, those are pharmaceuticals a Phillip Perry relies on as well.
That's right. Look, there are some things that it's fine if you have to import it. We can make chocolate in America without growing our own cocoa because if ever there's a disruption in chocolate, that would break my wife's heart. But it's not going to be a threat to national suiture exactly. But we do need to grow our own wheat and we have to have our own millers to make the flour so that we can bake bread. So and you know that's true about when it comes to
steel copper. It's true about medicines. Becoming dependent on imports for critical things that you cannot survive without, or that you cannot be the arsenal of democracy and freedom in the world without should be a non starter. We absolutely have to do this, and I think that the market is actually going to realize that this is going to
be good for America. I think that that actually there's a fun Man survey out of the back of America today that says cash holdings among global fund managers are very high.
They were very low.
This is a contrarian indicator. When there's a lot of cash not invested in the market, that's a sign that the market can go up. When there's very little cash that's not invested, it's very hard for the market to go up because nobody has more money to put into stocks.
Well, one of the other things that seems to be bearing fruit, I know it isn't as expensive for me to fill my gas tank up right now. Trump's energy policies obviously one hundred and eighty degrees shift from the Biden administration, and they're green a focus in this nonsensical idea that we can rely on the wind and the sun to power our electric grid. And fortunately on board
with the Trump administrations all the above policies. Some major tech companies that now want to build their own modular nuclear plants, which will allow that technology to come to the unwashed masses, which it should have already. So reducing the regulatory burden and opening up all of these different areas of energy development is going to be really sick helpful for our country.
That's right. If we can bring down the cost of energy, that will be very helpful to the US economy. And frankly, people who are very upset about things like USAID going away should actually be one hundred percent on board with energy abundance because guess what will help the developing world more than any other handout that we can give them is cheaper energy. That's great for the US economy, it's great for the global economy, and we're going to get there.
I mean, I have never seen an administration more focused on the production of energy than Donald Trump is. He really believes that that is one of the key things we can do to fire up our economy.
Well, and I'm convinced, you know, honestly, and I've never been a person who believes that you and I are exhaling our way into extinction. You know, CO two happens to be plant food, which is good for plants, and
we chase our tails with this. And I'm I'm really convinced considering China builds like two coal plants every single day and they don't care whit's worth of what they're putting into the environment, that they are one of the entities evil they may be that is pushing this myth on the United States and the European nations and perpetuating this myth that we need to all you tighten our belt and rely on the wind and sun to our collective peril. Everything runs on energy, and the cheaper the energy,
the less expensive products and goods and services are. And that's like giving everybody a tax break. If you can lower my monthly energy bill by one hundred bucks, that's making me one hundred dollars more wealthy. I can still live in my house at the temperature I want, and I've got a little bit more money in my pocket. It's like they're whittling it away at every turn.
That's right. There is almost a semi religious aspect to the climate change of armism, where they believe that if we can you know, more or less get ourselves to live in poverty. Yeah, than the gods of the climate will forgive us and everything will go. Well, that's not going to happen. There are no gods of the climate, and there's very little. Look, I do believe that climate
change is happening in the world. I do not believe that deciding that the US should be a poorer country or use less energy is going to make a witch difference. Not just because China is going to keep polluting as much as they are. They'll even pollute more because if we're not using the energy, they'll use more of it, Yeah, but also because the long history suggests that climate change is something that happens on Earth all the time.
Exactly, it happens all the time. There was a mini ice age. We used to have a glacier that covered the entire state of Ohio. It's why it's flat. It's why we grow corn here now, you know. And I'm glad it's gone. I'm glad they heat it up a little bit.
We are not.
We couldn't survive if this is all a glacier still, So they overlook that and just focus on the most recent weather event, as if that one is, Oh, that's our fault this time. It's nonsense, that's right.
You know, it's I was talking to a friend of mine who lives in New Orleans and it snowed in New Orleans for the first time in a long time, and they told us that that is also because of climate change. So if the weather's cold, then they say that's because of global warming. If the weather's hot, they say that's because of global warming. Frankly, as you said, the climate changes, if you look at the history of Europe, you'll see that climate change actually had a big effect.
I'm not saying it doesn't matter or it doesn't have an effect. It will have an effect. Places like Ohio and even further places like North Dakota will become more fertile, become better farmland. Frankly, other places will become hotter. That is going to happen. However, we can find ways to live with that rabit than trying to bow down, you know, sort of beat our backs with the whips of anti energy policies in order to try to appease the gods of climate change.
Well, you know, every time it happens, the volcano erupts. We had the wildfires in California, statisticians. Statisticians come out and point out, well, that negated all of our efforts to rid the planet a CO two for the past five or six years with what it belched out in terms of the naturally occurring event. I mean, you're fighting
the Sissivian challenges. Is not going to happen. So nature will take its course and negate what you've tried, and we'll all end up starving while we're trying to fight nature. Back over to USA, and you mentioned USA it earlier, and I know it's just a just a small slice of government spending, but what the revelations that are coming out of what Department of Government Efficiency is doing are
just mind boggling. And the American taxpayers getting a real eye full of all the waste and fraud and abuse that the government has been engaged in, the crazy projects we've been funding. And the Democrats are pulling their hair out over it, and I keep calling it, they're trying to defend the indefensible. I can't believe any single American taxpayer really wants us to continue funding pick one trimp on treadmills, you know, the Sesame Street in Iraq, I mean,
go on. The list is almost endless and the low hanging fruit. Looking at the Social Security Administration, we've got hundreds and thousands of Social Security numbers that are still active now whether or not they're getting money from them, but they're still active for people who are obviously dead that should have been cleaned up a long time ago.
And those numbers have actually even if the Social Security Administration is not sending out checks to people who are one hundred and sixty years old, which by the way, I know that people say they are not. We need a thorough accounting to make sure they are not. I do not trust that Bernie Sanders knows that they are definitely not setting out checks. He said this the day it came out. How could he know that. So yes,
let's look through the books. But those social Security numbers of long den people are actually have actually been used in all sorts of fraudulent ways, just getting small business loans from the US government. So it is not a harmless thing that those exist.
Of course, and people can use those who are not lawfully eligible to be employed in this country. That if using fake social Security numbers happens all the time, you just grab one, you present it to your employer, and boom you're in. So there's just all kinds of areas that where it can be abused.
And also think that you brought up the you know, one of the excuses people say, like usaid, it's just the small piece of the federal government. First of all, it's forty eight to sixty billion dollars. In my book, that's that's not real money. Second, it's incredible that they try to say, why do you care about that sixty billion? Well, okay, look, if you write me a check for sixty billion, I promise I will also waste it, and nobody should care.
The other thing I will say is that the way our deficit is built is on a zillion little pieces that you if you could say to any one part, oh, that's just so small, don't do anything about it. Well that means you can't do anything about anything, because every aggregate is built of small pieces.
Well, I'm a firm believer in my lifelong adage, mind the pennies, the dollars, mind themselves. So I wasn't trying to negate the importance of what they're doing. Everything counts, even if it's allows the four hundred thousand dollars grant to some university for DEI or something cut it. We shouldn't be spending our money on that. I'll tell you what. John Carney, he is the economics senator co author of the Breitbart Business Digest. I really strongly encourage you to
bookmark Breitbart dot com. It's an integral part of my preparation for the morning show. They do great reporting and they stay on top of things you're not going to find the mainstream media.
John.
It's always a pleasure talking with you, my friend. I look forward to our next conversation.
Thanks for having me.
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